Target Information

International Automotive Group (IAG) is a leading B2B e-commerce platform specializing in the distribution of automotive aftermarket spare parts. The company focuses on enhancing the supply chain for repair shops through a dedicated digital platform, which has enabled it to experience remarkable growth, with sales increasing more than fivefold from 2022 to 2024. IAG's robust management team, composed of experienced professionals behind Inter Cars' international expansion, has been fundamental in establishing a strong market position within the growing segment of the European automotive aftermarket.

IAG operates in several countries, including Czechia, Slovakia, Poland, Hungary, Latvia, and Croatia, where it is actively building a network of franchise partners supported by its headquarters. The company is now poised to leverage recent investment to further expand its e-catalogue services as well as optimize logistics and billing processes.

Industry Overview in the Target’s Country

The automotive aftermarket in Europe is witnessing significant growth, driven by an increase in vehicle ownership and the rising demand for spare parts and service solutions. As the market evolves, there is a noticeable shift towards digitalization, with companies increasingly adopting e-commerce platforms to streamline operations and enhance customer experience. The automotive sector in countries like Czechia is rapidly adapting to these changes, presenting ample opportunities for businesses like IAG that prioritize technological integration.

Furthermore, ongoing advancements in automotive technology, including electric vehicles and smart vehicle systems, are reshaping the aftermarket landscape. As traditional service models shift, the demand for innovative service solutions that include comprehensive digital offerings is on the rise. This trend indicates a fertile ground for players targeting efficiency and convenience in the distribution of spare parts.

The competitive landscape in the European automotive aftermarket is becoming increasingly fragmented, with new entrants and technology-driven startups gaining traction. Businesses that can successfully harness technology to improve supply chains and customer engagement are likely to thrive. IAG's focus on e-commerce positions it well within this dynamic marketplace as it opens doors to broader consumer bases.

As the automotive industry continues to pivot towards sustainability and advanced technologies, stakeholders are emphasizing the need for diversified service offerings that extend beyond conventional parts distribution. Consequently, IAG's innovative model addresses critical market needs and showcases potential for significant international growth.

Rationale Behind the Deal

The €5 million investment round led by Jet Investment is strategically aimed at fueling IAG's expansion into the European automotive spare parts and services market. With Jet Investment contributing €2.4 million, alongside others such as Venture to Future Fund and founding investor Josef Koller, the funding is set to enhance IAG's technological capabilities and broaden its reach in the competitive market.

Investors believe that IAG's innovative e-commerce platform and logistical optimization will empower it to tap into the vast potential of the European market, aligning perfectly with Jet Investment's strategy of supporting fast-growing B2B technology companies that address prevalent market needs.

Information About the Investor

Jet Investment is a prominent venture capital firm that specializes in investing in innovative technology startups with high growth potential. The firm manages the Jet Venture 1 Fund, which concentrates on investments in sectors including advanced industrial B2B manufacturing systems, IoT, AI, cybersecurity, and supply chain technology. With a planned fund volume of EUR 50 million, Jet Venture 1 aims to achieve a 20% annual return for investors, targeting a portfolio of 16 to 20 companies across various stages of development.

Managed by a team of seasoned professionals led by Kamil Levinský and Roger Dorsch, Jet Investment has established a reputation for selecting and nurturing transformative businesses. IAG marks Jet Investment's second venture capital investment, following its support of the start-up Partory, reflecting its commitment to fostering innovation in traditional industries.

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From an analytical perspective, the investment in International Automotive Group appears to be a sound decision. IAG's exponential growth, backed by an experienced management team, positions it advantageously within a rapidly evolving market. The ongoing digital transformation within the automotive aftermarket offers a robust opportunity for expansion, further reinforced by Jet Investment's strategic involvement.

The collective expertise of the investors, including Jet Investment and Venture to Future Fund, enhances confidence in IAG's potential. Their established track records in the sector suggest that they will provide valuable guidance and support, assisting IAG in navigating its growth trajectory while leveraging market insights.

Moreover, with increasing digitization in the automotive industry, businesses that emphasize innovative distribution models will likely capture significant market share. IAG's strategic vision aligns seamlessly with this market demand, reinforcing the argument that this investment could not only yield substantial returns but also contribute to broadening IAG's footprint in the European market.

In conclusion, based on IAG's promising business model, the scalability of its operations, and the favorable market dynamics, this deal is poised to be a strategic investment, likely leading to favorable outcomes for the stakeholders involved.

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